According to a Reuters report published this week, Spain-based media giant Telefonica SA is considering the possible purchase of AT&T's Latin American assets. The assets include cable and satellite TV operations in Brazil, Colombia, Venezuela, Argentina, as well as several other counties that were part of AT&T's $49 billion acquisition of DIRECTV.

According to Parks Associates research, over 1.6 billion households worldwide will subscribe to a pay-TV service by 2020. The North American market is experiencing a decline in penetration, but growth in Western Europe and developed Asian markets continues steadily.

Brett Sappington, director of research at Parks Associates, provided the following comments about the announcement:

The decision to sell off the DIRECTV Latin America assets and networks is a huge one for AT&T, one that will spell out the company’s focus for the future. Does AT&T plan to be a U.S.-focused company or a multinational operator?

AT&T has already begun to acquire wireless operators in Latin America, including Iusacell and Nextel Mexico. A selloff of the company’s newly acquired DIRECTV assets in Latin America could be a signal that the company is re-thinking its approach to the region.